KuangChi says parent invests $600 million for 1.88 percent of Unicom

HONG KONG (Reuters) - KuangChi Science Ltd said its parent has invested 4 billion yuan ($600.3 million) in a 1.88 percent stake in China United Network Communications Ltd, becoming one of its strategic investors under a mixed ownership reform plan.

KuangChi Group-controlled KuangChi Connection Technology will cooperate with China United Network in areas including cloud computation, big data, internet of things, artificial intelligence, digital content and payment finance, the Hong Kong-listed firm said late on Monday.

KuangChi Science - an investment company engaged in space equipment, paper and property with a market value of HK$15.5 billion ($2 billion) - would explore the possibility of cooperation with China United Network, it said in the filing to the Hong Kong bourse.

China Unicom’s $11.7 billion ownership reform plan, in which Unicom’s Shanghai-listed unit will tap more than a dozen major investors including Alibaba, Tencent and Baidu for funds, has been billed as a model case for revitalizing Chinese state firms with private capital.